The amount of alcohol Britons drink has fallen by almost a fifth over the past decade, but beer sales are increasing, according to research.

People drank an average of 7.76 litres of alcohol last year, slightly down on 2013, and over a litre and a half less than in 2004, said the British Beer & Pub Association.

Its annual study, based on HM Revenue and Customs tax returns, found that consumption has fallen in eight of the last 10 years.

Beer's share of the market increased by 1 per cent to over 36 per cent last year, ahead of wine (33 per cent), spirits (21 per cent) and cider (8 per cent)

The association said two cuts in beer duty over the past two years and the scrapping of a so-called duty escalator had helped sales.

An estimated 7,000 pubs closed and 58,000 jobs were lost when the escalator was in place between 2008 and 2013.

Brigid Simmonds, the BBPA's chief executive, said: "While the figures certainly bury the myth that overall UK alcohol consumption is inexorably rising, it is hugely encouraging to see such a solid performance from beer in 2014.

"There is no doubt that two cuts in beer duty have had a huge impact in supporting a British-based industry and in encouraging consumers back towards our favourite, lower-strength drink.

"With new investment in the beer category protecting pubs and creating jobs, it all adds to an overwhelming case for a third, historic cut in beer duty in next week's Budget."

The Society of Independent Brewers said its research showed its members sold over 15 per cent more beer last year, or 25 per cent since the duty escalator was abolished.

A survey of 270 brewers found that 1,600 jobs were created over the past two years and most plan to hire more staff over the next 12 months.

SIBA managing director Mike Benner said: "The results of the survey clearly demonstrate how the two consecutive cuts in beer duty and end of the beer duty escalator have had a positive impact on independent British brewing and have boosted confidence.

"Our members have invested the duty savings in their businesses, buying new brewing equipment, increasing production and recruiting new staff.

"By announcing a third cut in beer duty in next week's Budget, the Government can ensure that the momentum of the previous cuts is maintained and the independent brewing sector, now recovering and starting to thrive after years of unfair taxation, continues to grow, bringing jobs and investment to hundreds of local economies around the country."